Oil slips as Indian coronavirus cases increase

Brent crude oil is down 2% at $64.77 a barrel and WTI futures are down 1% at $61.53 a barrel with a handful of bearish factors and uncertainty combining to weigh on sentiment.

The continuing surge in coronavirus cases in major crude consumer India is affecting the short-term demand for oil. "Some refiners in the country are already reacting to weaker fuel demand by reducing run rates," ING's Warren Patterson says. 


*Performance of WTI crude oil prices (tradingview.com)[1]


New Nestle’s purchase could be short-term negative for bonds

ING says that Nestle's possible purchase of nutritional-supplements maker Bountiful is likely to be slightly negative for the bonds of the world's largest packaged-food company. "The impact on [Nestle's] credit curve will depend on the terms and size of the potential deal, but we expect the initial response to be slightly negative," says ING's Alyssa Gammoudy. Nestle is in talks to buy Bountiful for a price in the mid-single-digit billions, The Wall Street Journal reported on Friday.*


*Performance of Nestle shares(tradingview.com)[2]


Gold prices can see short term pressure for sell

Trading Central - Gold remains under pressure as it has formed a double-top pattern. Also, the MACD has crossed below its signal line and the 0-level, showing continued downside momentum. Thus, unless the key resistance level at $1,785.0 is surpassed, gold should target $1,770.0 and $1,763.0 on the downside. Alternatively, a break above $1,785.0 would trigger a rebound to $1,791.0 on the upside. Spot gold is trading at $1,775.5 an ounce. *


*Performance of XAU/USD prices(tradingview.com) [3]


Copper near 10-years highs 

Copper price rises to its highest level in nearly 10 years amid concerns of a strike at mines in Chile, copper largest producer. Three-month copper on the LME gains 1.5% to $9,691 a metric ton. Chilean mining unions have threatened strike action over government changes to their pension programs. Wenyu Yao, senior commodity strategist at ING, says that mining unions were threatening to tighten the market even further and to lift prices. Separately, the International Copper Study Group said late Friday that the global refined copper market had a 28,000-ton surplus in January compared to a 1,000-ton deficit in the previous month. 


*Performance of Copper prices (tradingview.com) [4]



*Historical price chart for Copper on London Metal Exchange (www.lme.com)



* Forward-looking statements are based on assumptions and current expectations, which may be inaccurate, or based on the current economic environment which is subject to change. Such statements are not guaranteeing of future performance. They involve risks and other uncertainties which are difficult to predict. Results could differ materially from those expressed or implied in any forward-looking statements.


[1, 2, 3,4] Past performance is no guarantee of future results.


Sources: Wall Street Journal; Trading Central; Dow Jones Newswire 

The content of this material constitutes marketing communication and should not be considered as any type of investment advice and/or investment research and/or a solicitation for any transactions. This material was prepared for informational/educational purposes only and does not imply an obligation to perform investment transactions nor does it guarantee or predict future performance. BCM Begin Capital Markets Cy Ltd and its relevant persons including affiliates, agents, directors, or employees do not guarantee the accuracy, validity, timeliness, or completeness of any information/data provided by third parties and assume no liability for any loss arising from any investment made based on the said information/data. Past performance is no guarantee of future results.